Cogent Communications Carries the Internet but Its Stock Has Been Crushed

"Cogent is a Tier 1 internet backbone provider - the highway system underneath the internet. When data travels across the country or around the world, it often rides Cogent's all-optical IP network, which spans 57 countries and connects to 1,902 data centers globally. The company directly connects 7,659 networks, more than any other service provider on the internet."

"The legacy Sprint wireline business has collapsed from $118 million per quarter at deal close to $43 million per quarter in Q4 2025. That's a brutal 64% decline. Meanwhile, the original Cogent business has grown from $155 million to $197 million per quarter over the same period."

"The growth story lives in wavelength services - high-capacity optical connections that AI infrastructure, hyperscalers, and large enterprises need badly. Cogent's wavelength revenue surged 73.7% year-over-year to $12.1 million in Q4 2025, with customer connections up 84.6% to 2,064."

Cogent Communications is a Tier 1 internet backbone provider operating critical infrastructure that carries data globally across 57 countries, connecting 1,902 data centers and 7,659 networks. The company acquired Sprint's wireline business from T-Mobile in 2023, expanding its physical footprint to 482 owned technical buildings. However, this legacy Sprint business has collapsed from $118 million to $43 million quarterly revenue, creating a drag on overall results. Simultaneously, Cogent's original business grew from $155 million to $197 million quarterly. The real growth driver is wavelength services—high-capacity optical connections for AI infrastructure and hyperscalers—which surged 73.7% year-over-year with customer connections up 84.6%, suggesting significant future potential despite current headline revenue declines.

Read at 24/7 Wall St.